Just look in awe at how easy it is to erase most of those nasty losses yesterday, Cash market gets to gap open because the futures are up overnight. And that down day is almost a faded memory thanks to the index futures. 90% overnight up time. Bear markets are a thing of the past, no need to worry folks, index futures to the rescue. Its like free money.
To understand the gaps watch the other world indexes. It makes it especially funny to listen to Australian talking heads explaining what happened in the Aussie stock market that justifies todays change when it was almost entirely due to last nights move in the US markets. NZSE40(lol) > SPI NK HSI > ESTX DAX FTSE > ES DJI ... and repeat cycle
============== MminiT; Thats a stretch to figure gaps could end a bull or bear trend; of course both do end & it may or may not happen on a gap Helpful subject, gaps, happens in any market, marketplace; people tend to buy on lower prices[like little buys yesterday]. sell on higher prices. People really buy on 50% gap down sale, in any mmarket If all trends line up , easy to overule gaps; then, gap down or up, probably go down with most of trends/friends. Thats not a strong trend in ES, sold a bit gap down, bought a bit, eod ,a bout 1 point lower,YM lower a bit also.
I like to generalize that sentiment to apply to all talking heads and news broadcasts in all countries: "Stocks up on positive X!" Three hours later... "Stocks down on worse than expected X!" Where X is often the same in both cases LMAO Something about journalists that make them feel they have to give a reason for these moves when mostly the moves are just noise. I recall Taleb having a rant on this very same topic in FBR. Turn off the news... MoMoney.